Hey there!
Unfortunately there must be a problem with your video card's drivers. The game uses a very old version of DirectX that not a lot of card manufacturers support well anymore.
You could try installing dgvoodoo2 http://dege.freeweb.hu/dgVoodoo2/dgVoodoo2.html, it translates the old DirectX calls to a newer version. However it's closed source, and I can't offer any assistance with that application!
Hope that helps!